Correlation Between Mazhar Zorlu and Borlease Otomotiv

Can any of the company-specific risk be diversified away by investing in both Mazhar Zorlu and Borlease Otomotiv at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mazhar Zorlu and Borlease Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mazhar Zorlu Holding and Borlease Otomotiv AS, you can compare the effects of market volatilities on Mazhar Zorlu and Borlease Otomotiv and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mazhar Zorlu with a short position of Borlease Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mazhar Zorlu and Borlease Otomotiv.

Diversification Opportunities for Mazhar Zorlu and Borlease Otomotiv

0.0

Correlation Coefficient

Mazhar Zorlu  Borlease Otomotiv

Pay attention - limited upside

The 3 months correlation between Mazhar and Borlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mazhar Zorlu Holding and Borlease Otomotiv AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borlease Otomotiv and Mazhar Zorlu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mazhar Zorlu Holding are associated (or correlated) with Borlease Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borlease Otomotiv has no effect on the direction of Mazhar Zorlu i.e., Mazhar Zorlu and Borlease Otomotiv go up and down completely randomly.

Pair Corralation between Mazhar Zorlu and Borlease Otomotiv

If you would invest  6,725  in Borlease Otomotiv AS on October 23, 2024 and sell it today you would earn a total of  450.00  from holding Borlease Otomotiv AS or generate 6.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Mazhar Zorlu Holding  vs.  Borlease Otomotiv AS

Mazhar Zorlu Holding

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Mazhar Zorlu Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Mazhar Zorlu is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Borlease Otomotiv

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Borlease Otomotiv AS are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Borlease Otomotiv demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mazhar Zorlu and Borlease Otomotiv

The main advantage of trading using opposite Mazhar Zorlu and Borlease Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mazhar Zorlu position performs unexpectedly, Borlease Otomotiv can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Borlease Otomotiv will offset losses from the drop in Borlease Otomotiv's long position.

The idea behind Mazhar Zorlu Holding and Borlease Otomotiv AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.